Thursday 28 Mar 2024
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KUALA LUMPUR (April 1): CIMB Investment Bank Bhd and Maybank Investment Bank Bhd have signed an agreement with Cititower Sdn Bhd — a joint-venture between KLCC Holdings Sdn Bhd and Qatar’s QD Asia Pacific Ltd — to offer a 20-year syndicated Islamic term financing of RM3.2 billion.

In a joint statement this evening, the two banking groups — which act as the joint mandated lead arrangers and bookrunners — said the financing is to partly fund a mixed commercial development project in Kuala Lumpur City Centre (KLCC), which will consist of a Grade A office tower, a hotel tower, retail podium and other ancillary facilities.
 
According to Cititower chairman Datuk Hashim Wahir, the project is touted as another iconic landmark in KLCC, which will enhance the overall Kuala Lumpur City’s skyline, while complementing existing prime commercial developments such as the Petronas Twin Towers.
 
“These iconic mixed commercial towers developed by Cititower are designed with development components that will increase the vibrancy and value-add to the overall commercial branding in the KLCC precinct.

"Both hotel and office towers are fully optimising the beautiful view of KLCC Park, which is the heart and soul of the integrated KLCC development,” he said in the statement.
 
The project commenced in January 2012 and will have an estimated total net lettable area (NLA) of 2.84 million sq ft, consisting of 1.72 million sq ft of office tower, 0.65 million sq ft of hotel tower and 0.47 million sq ft of retail podium.
 
The two banks said the project is expected to be completed by mid-2020.

CIMB Group Holdings Bhd group chief executive officer (CEO) Tengku Datuk Zafrul Tengku Abdul Aziz said the financing transaction is a testament to CIMB's proven track record in delivering financing solutions for its corporate clients and also demonstrates the continuing popularity of Islamic finance as a source of funding.

"Leveraging our strength as one of the top global leaders in Islamic banking, Maybank has ensured that we provide a competitive and innovative financing solution that provides long term value to Cititower," said Maybank group president and CEO Datuk Abdul Farid Alias.

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